A reverse mortgage specialist your clients can trust
Financial planners, realtors, CPAs, estate planning attorneys, senior care professionals: your clients deserve a reverse mortgage specialist who treats them the way you do. Let's serve them together.
A powerful tool for the right client
Both the government backed Home Equity Conversion Mortgage (HECM) and private jumbo reverse mortgages for higher valued properties can be excellent tools for high net worth clients looking to prevent portfolio depletion. It's a loan that needs to be evaluated based on the client's specific scenario.
With your client's permission, I'm happy to run detailed loan scenarios so we can reach a decision that aligns with the interest of all parties. I'm always upfront with my clients about both the advantages and the disadvantages of a reverse mortgage.
Advantages and disadvantages, honestly
Every client's situation is different. Here's the short list your clients should weigh, without the sugarcoating.
Advantages
- Proceeds typically do not affect Social Security or Medicare.3
- Provides access to a portion of home value with no required monthly mortgage payments. Borrowers must continue to meet ongoing property obligations like insurance and taxes.
- Could allow a senior to purchase a new home with no monthly principal and interest payments.
- Improves a senior's standard of living, or helps them retire with fewer financial worries.
- Pays off an existing mortgage, freeing up cash flow. With the reverse mortgage, there are no more required principal and interest payments.
- Allows the senior to maintain their independence while living in their own home.2
- Provides money for in home health care or medical expenses.
Disadvantages
- Potential foreclosure if the borrower does not meet ongoing obligations like property taxes, insurance, or HUD maintenance requirements.
- Uses equity that could otherwise be passed on to the estate or children.
- The loan balance increases and the equity decreases over time.
- May affect eligibility for needs based programs such as Medicaid.
- For clients itemizing tax deductions, a reverse mortgage can eliminate the home interest deduction if no interest is paid out of pocket. If the homeowner pays upfront fees and accruing interest, the deduction may be available in the year the interest is paid.
- There are closing costs and insurance that apply, so borrowers should plan on living in the home for more than a couple of years.
- Home Equity Conversion Mortgages are the only reverse mortgages insured by FHA.
Why work with a reverse mortgage specialist
What sets a reverse mortgage specialist apart, and why it matters for the clients you refer.
Your client's trust is the whole business. I treat every referral like my own family.
Who should consider a reverse mortgage?
- A parent with substantial home equity and a limited or fixed income.
- Wants to maintain or improve their lifestyle.
- Prefers to access mortgage loan proceeds instead of other accounts or sources that may be taxable.
- Wants to remain in their home and age in place using a reverse mortgage.2
Ready to serve your clients together?
Send over your info and I'll get in touch personally. Whether you have a specific client in mind or you're just looking for a reverse mortgage specialist to keep in your back pocket, I'd love to connect.
I'm happy to run scenarios, sit in on client conversations, or answer any technical questions before you make a referral.
Get in touch
I'll reach out personally, usually the same day.
Prefer to just talk?
Pick up the phone. I'm always happy to answer questions and talk through client scenarios directly.
1 Consult your financial advisor.
2 You cannot lose your home under normal circumstances so long as you pay your property taxes, homeowner's insurance, maintenance costs, and otherwise comply with the loan terms.
3 Any needs based government benefits could potentially be impacted by a reverse mortgage. Homeowners receiving such benefits should seek qualified professional advice in such circumstances.